Week 12 Part 2: Digital Communications, Promotions PDF

Week 12: Part 2 Creating Value: Promotions: Managing Digital Communications INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Objectives and Questions...

Week 12: Part 2 Creating Value: Promotions: Managing Digital Communications INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Objectives and Questions What are the pros and cons of online marketing? How can companies carry out effective social media campaigns? What are some tips for enjoying positive word of mouth? What are important guidelines for mobile marketing? INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Online Marketing Paid and owned media vs. earned (or free) media. Paid media includes company-generated advertising, publicity, and other promotional efforts. Earned media is all the PR and word-of-mouth benefits a firm receives without having directly paid for anything—all the news stories, blogs, and social network conversations that deal with a brand. Social media play a key role in earned media. A large part of owned media consists of online marketing communications, Four of the main categories of online marketing communications: (1) Web sites, (2) search ads, (3) display ads, and (4) e-mail. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  ONLINE MARKETING COMMUNICATIONS – Advantages Wide Reach: access to a global audience, allowing businesses to expand beyond geographical boundaries. Cost-Effectiveness: Compared to traditional media (TV, radio, print), Personalization and Targeting: segment audiences and deliver personalized content based on preferences, behaviours, or demographics. Measurability: Analytics tools (e.g., Google Analytics, social media insights) help track performance, measure ROI, and optimize campaigns in real-time. Interactivity: Online marketing enables direct engagement with customers through comments, messages, surveys, and social media interactions. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  ONLINE MARKETING COMMUNICATIONS – Advantages (cont’d) 24/7 Availability: Online content is accessible around the clock, offering continuous visibility to potential customers. Flexibility and Speed: Campaigns can be adjusted quickly in response to market trends or customer feedback, minimizing losses. Enhanced Customer Relationships: Tools like email marketing, social media, chatbots, etc. Variety of Platforms: social media, search engines, email and affiliate marketing, Eco-Friendly: Reduces the need for paper-based marketing, contributing to sustainability efforts. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  ONLINE MARKETING COMMUNICATIONS – Disadvantages Ad clutter Ad reactance. 4 Advertisers also lose some control over their online messages, which can be hacked or vandalized. High Competition Dependence on Technology: relies heavily on technology and the internet, making it vulnerable to technical issues and outages. Privacy Concerns Ad Fatigue INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  ONLINE MARKETING COMMUNICATIONS – Disadvantages (cont’d) Limited Reach in Some Demographics: may not be as effective in reaching older or less tech-savvy audiences who prefer traditional media. E.g.: Adults who primarily consume TV or print media may not engage with social media ads. Security Risks: hacking and data theft, E.g.: A cyberattack on a company's email list could result in stolen customer information. Rapidly Changing Trends: requiring businesses to adapt constantly to new platforms, algorithms, and consumer behaviours. Time-Intensive Management: requires continuous monitoring, content updates, and customer interaction, which can be resource-intensive. Over-Reliance on Platforms: Businesses dependent on specific platforms risk losing audience access if rules or policies change. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Online Marketing Communication Options ❑ 1) Web sites, (2) search ads, (3) display ads, and (4) e-mail. 1) Web sites ❑ Visitors will judge a site’s performance on ease of use and physical attractiveness. ❑ Ease of use means: (1)The site downloads quickly, (2) the first page is easy to understand, and (3) it is easy to navigate to other pages that open quickly. ❑ Physical attractiveness is ensured when: (1) Individual pages are clean and not crammed with content, (2) typefaces and font sizes are very readable, and (3) the site makes good use of colour (and sound). INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Online Marketing Communication Options (2) Search ads ❑ An important component of online marketing is paid search or pay-per-click ads. 35% of all searches are reportedly for goods or services. ❑ Search engine optimization (SEO) (3) Display ads Display ads or banner ads are small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant Web sites. The larger the audience, the higher the cost. Interstitials: advertisements, often with video or animation, that pop up between page changes within a Web site or across Web sites. (4) E-mail E-mail allows marketers to inform and communicate with customers at a fraction of the cost of a d-mail, or direct mail, campaign. E-mails can be very productive selling tools. Firms such as Kellogg, Whirlpool, and Nissan are emphasizing both e-mail and search marketing. E-mails must be timely, targeted, and relevant. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  SOCIAL MEDIA An important component of digital marketing is social media. Social media are a means for consumers to share text, images, audio, and video information and with companies, and vice versa. Social media allow marketers to establish a public voice and presence online. They can cost-effectively reinforce other communication activities. Because of their day-to-day immediacy, they can also encourage companies to stay innovative and relevant. Marketers can build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  SOCIAL MEDIA Platforms There are three (3) main platforms for social media: (1) Online Communities and Forums: Many are created by consumers or groups of consumers with no commercial interests or company affiliations. Others are sponsored by companies whose members communicate with the company and with each other through postings, text messaging, and chat discussions about special interests related to the company’s products and brands. These online communities and forums can be a valuable resource for companies and fill multiple functions by both collecting and conveying key information (2) Blogs (individual blogs and blog networks such as Sugar and Gawker): regularly updated online journals or diaries, have become an important outlet for word of mouth. (1) Social Networks (like Facebook, Twitter, and YouTube). INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  SOCIAL MEDIA – Using it effectively marketers must recognise that when it comes to social media, only some consumers want to engage with some brands, and, even then, only some of the time. harnessing word of mouth, and creating buzz also require companies to take the good with the bad. use social media and the Internet in a constructive, thoughtful way by creating a strong online presence and offering better credible alternative points of view if negative feedback occurs. And if Leverage your strong online community members’ desire to rush to defend the brand and play a policing role over inaccurate or unfair characterisations. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Forms of Word of Mouth Social media are one example of online word of mouth. Word of mouth (WOM) is a powerful marketing tool. WOM happens in the ff forms: 1. online WOM: most word of mouth is not generated online. 2. Offline WOM: occurs 90% 3. face-to-face WOM: occurs 75% 4. over the phone WOM: occurs 15 % 5. Viral marketing: is a form of online word of mouth, or “word of mouse,” that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Mobile Marketing ❑4 distinctive characteristics of a mobile device: (1) It is uniquely tied to one user; (2) it is virtually always “on” given it is typically carried everywhere; (3) it allows for immediate consumption because it is in effect a channel of distribution with a payment system; and (4) it is highly interactive, given it allows for geo-tracking and picture and video taking. ❑Advantage to marketers: Reach consumers through advertisements and mobile apps, and Interstitials INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA  Developing Effective Mobile Marketing Programs ❑Mobile ad copy should occupy only 50 % of the screen, avoiding complex viewing experiences that may take a toll on consumers’ battery and data availability as well as on their time. ❑Brands should limit their ads to a pair of phrases—the offer and the tagline. ❑Brands should place their logo in the corner of the mobile ad frame. ❑Ads should use at least one bright color, but no more than two. Calls to action should be highlighted with a ❑bright colour. INSTITUTE OF DISTANCE LEARNING –SCHOOL OF GRADUATE STUDIES UPSA